Japan International Cooperation Agency (JICA) has extended an official development assistance (ODA) loan of 19,981 million yen (close to Rs 1,180 crore) for Chennai Metro Rail project.

Japan International Cooperation Agency (JICA) has extended an official development assistance (ODA) loan of 19,981 million yen (close to Rs 1,180 crore) for Chennai Metro Rail project.

The ODA loan has a concessional 1.4% interest rate and 30 years of repayment period, including 10 years of grace period. The aid from JICA will facilitate construction of underground tunnels, rail tracks, electrical, telecom & signalling systems, procurement of the trains and consultancy service.

With the signing of this agreement, the cumulative loan amount provided by JICA for metro projects in India including Delhi, Bengaluru, Kolkata, Mumbai and Ahmedabad metros, has exceeded 1 trillion yen (around R59,071 crore).

In Chennai, the 10-km line from Koyambedu to Alandur of Corridor 2, covering seven elevated stations, started commercial operations in June 2015. In 2016, the other stretches will be commissioned and Chennai Airport will be connected by metro.

Takema Sakamoto, chief representative, JICA India Office, said, “JICA has been promoting development of economic infrastructure which facilitates sustained growth. Chennai Metro will mitigate traffic congestion, enhance ease of travel and improve quality of life significantly. Opening of the first metro line by Chennai Metro Rail Limited is a giant stride towards fulfilling Chennai Metro’s mission of providing safe, fast and reliable public transport service.”